Executive Summary

Q4 2024 revenue was $4.90M, down 6.0% year over year; GAAP gross margin was 77.4% (down 440 bps YoY); income from continuing operations swung to a loss of $(0.14)M; Adjusted EBITDA was $0.5M versus $1.0M in Q4 2023 .
Full-year 2024 revenue was $19.5M (+1.8% YoY); GAAP gross margin 79.2% (from 88.0%); income from continuing operations $0.7M; cash and equivalents $7.85M; total liabilities $2.60M at year-end .
Management flagged a sharp stock decline and emphasized execution; unaudited Jan–Feb 2025 revenue was about $5.7M, >50% YoY growth and above the entire Q1 2024, suggesting early 2025 momentum and a potential positive revision bias to near-term expectations .
Strategic initiatives: rollout of mid-sized underwriting (>150 employees), new Spec & Agg stop-loss product, and executive team expansion to drive growth and cybersecurity/operations rigor .
No formal FY2025 guidance was issued; the company provided a trading update highlighting improved liquidity and operations following the December 2024 IPO .

What Went Well and What Went Wrong

What Went Well

Cash strengthened and liabilities reduced: cash and equivalents rose to $7.85M (from $2.42M) and total liabilities fell to $2.60M (from $5.41M), improving balance sheet flexibility post-IPO .
Revenue mix shifting toward program fees: FY 2024 fees increased to $12.84M (+17.5% YoY) while underwriting model revenue declined as the company emphasized better network access and program value for small employers .
Strategic product/market expansion: “We are set to fully launch our mid-sized business underwriting solution… Our new Spec & Agg stop-loss product further enhances efficiency…” — Tim Johnson, CEO .

What Went Wrong

Q4 topline and margin pressure: revenue fell 6% YoY and gross margin declined to 77.4% due to higher cost of revenues tied to new distribution/channel partner fees, captive management fees, and increased software amortization .
Operating expense step-up: Q4 OpEx rose to $4.11M from $2.81M, with CFO citing a $1.0M impact from reversal of compensation accrual in 2023 (affecting YoY comparability) and investments in underwriting/claims/enrollment .
Demand indicators softer vs prior year: enrolled employees billed fell to 18,348 (from 21,213) and business clients serviced to 890 (from 1,002), reflecting a deliberate moderation of growth while building infrastructure and controls .

Financial Results

P&L and Margin Comparison

Metric	Q4 2023	Q4 2024	FY 2023	FY 2024
Revenue ($USD Millions)	$5.216	$4.905	$19.152	$19.491
GAAP Gross Margin (%)	81.8%	77.4%	88.0%	79.2%
Income from Continuing Ops, net ($USD Millions)	$1.002	$(0.144)	$2.477	$0.670
Adjusted EBITDA ($USD Millions)	$1.0	$0.5	$4.8	$2.3

Note: EPS was not disclosed in the Q4 2024 press release/8-K exhibit; the company focused on net income and Adjusted EBITDA .

Segment/Revenue Detail

Revenue Component ($USD)	Q4 2023	Q4 2024	FY 2023	FY 2024
Underwriting Modeling (ICE)	$2,011,060	$1,697,080	$8,226,852	$6,649,271
Revenues from Fees	$3,205,223	$3,207,484	$10,924,650	$12,841,635
SMR	$2,405,622	$2,470,284	$8,085,596	$9,849,300
HI Card	$799,601	$737,200	$2,839,054	$2,992,335
Total Revenues	$5,216,283	$4,904,564	$19,151,502	$19,490,906

KPIs

KPI	FY 2023	FY 2024
Enrolled Employees (EEs) Billed	21,213	18,348
Business Clients Serviced	1,002	890
Accounts Receivable Turnover (Days)	—	29
Brokers / TPAs / States (operating footprint)	—	417 brokers, 11 TPAs, 41 states

Balance Sheet reference: Cash & Equivalents $7.85M vs $2.42M; Total Liabilities $2.60M vs $5.41M (as of 12/31/2024 vs 12/31/2023) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue (Trading Update)	Q1 2025 to‑date	None	Jan–Feb 2025 unaudited revenue ≈ $5.7M; >50% YoY; exceeded entire Q1 2024	Update issued (no formal guidance)
Dividend Policy	Ongoing	N/A	No cash dividends planned; retain earnings for growth	Maintained

Management did not provide formal quantitative guidance ranges for revenue/margins/tax/OpEx; the company emphasized execution and early 2025 momentum .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q‑2 & Q‑1)	Current Period (Q4 2024)	Trend
AI/Technology initiatives (eDIYBS)	Private company; 10‑K details third‑party AI, internal risk scoring, governance	Expansion to mid‑sized underwriting; faster data parsing; beta tests positive	Increasing adoption and scope
Product portfolio (Spec & Agg stop‑loss)	N/A in prior public calls	New Spec & Agg product to streamline TPA/carrier claims	Product breadth expanding
Revenue mix (fees vs underwriting)	Emphasis on program fees in 10‑K narrative	Fees stable QoQ; FY fees up; underwriting model revenue down due to mix/carrier shift	Mix shifting toward program fees
Cybersecurity/Controls	Focus in 10‑K; governance and audits	Reinforced; exec team adds CISO; stronger frameworks	Strengthening risk posture
Market/Distribution	417 brokers, 11 TPAs, 41 states per 10‑K	Targeting larger groups; ramping by mid‑year for Jan 1 seasonality	Channel expansion
Macro narrative	N/A	“Current administration focused on cutting waste” tailwind cited	Constructive backdrop

Management Commentary

“2024 was a transformative year… we successfully completed our IPO, expanded our product offerings, and made strategic investments in technology and infrastructure” — Tim Johnson, CEO .
“In 2025, we are accelerating execution… fully launch our mid‑sized business underwriting solution… Our new Spec & Agg stop‑loss product further enhances efficiency…” — Tim Johnson .
CFO on Q4 drivers: “Underwriting model revenue… $1.7M vs $2.0M… temporary reduction due to increased offering of E‑rated insurance policies… Gross margin… driven by an increase in cost of revenue… new distribution channel partners fee, capital management fee… and new initiatives” — Julia Qian .
“Our unaudited total revenue for January and February is around $5.7M which has already exceeded the entire first quarter revenue of 2024” — Tim Johnson .

Q&A Highlights

Underwriting model evolution: Management is adding features and improving eDIYBS to enable continual changes and faster quoting; CTO joined in late 2024 to accelerate development .
Collaborations: Integration with Vitable DPC and MARPAI to provide competitively priced quotes via eDIYBS; management expects cost containment and better network access to support demand .
Seasonality and mid‑sized expansion: While January 1 is significant for larger groups, HIT expects opportunities throughout the year; preparing systems by mid‑year ahead of RFP cycles .
AI and data parsing benefits: Third‑party AI vendors and proprietary parsing to reduce manual underwriting time; beta feedback in Q4 2024 was positive; expected to be “game‑changing” in 2025 .
Investor concerns: Management addressed last week’s sharp stock decline, emphasizing strong cash, no debt, and continued execution focus .

Estimates Context

Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable due to a SPGI request limit; therefore, a beat/miss assessment versus consensus cannot be provided at this time [GetEstimates error].
Given the unaudited Jan–Feb 2025 revenue of ≈$5.7M (>50% YoY; above entire Q1 2024), near‑term estimates may need upward revision contingent on sustainability of new product momentum and mid‑sized rollout .

Key Takeaways for Investors

Q4 2024 showed margin compression and a small operating loss, driven by mix and increased cost of revenues tied to new partners and amortization; watch cost discipline and margin trajectory as mid‑sized underwriting scales .
Revenue mix shifting toward program fees (SMR/HI Card) supports recurring fee economics; underwriting model revenue declined as carrier/product mix evolved .
Early 2025 momentum: unaudited Jan–Feb revenue ≈$5.7M suggests a strong start; monitor Q1 confirmation and sustainability beyond seasonally strong periods .
Strategic catalysts in 2025: mid‑sized underwriting launch and Spec & Agg stop‑loss product, plus DialCare and Vitable/MARPAI collaborations, can expand TAM and drive pipeline conversion .
Risk/controls posture improving (CISO appointment; AI governance; cybersecurity program); reduces operational risk and supports scalability as a new public company .
Balance sheet flexibility post‑IPO (cash up, liabilities down) provides capacity to invest in tech, channels, and talent; no dividends planned, earnings retained for growth .
Stock reaction sensitivity remains high; execution on product rollouts and margin recovery are likely to be key narrative drivers for near‑term performance .

Appendix: Additional References

Pre‑announcement of Q4/FY 2024 earnings call and webcast details .
IPO pricing and closing (Dec 2024) .
Executive team expansion (COO, CSO, CGO, CISO) to support growth and governance .
HIT footprint and network (brokers/TPAs/states) via 10‑K .
No prior two quarters’ public earnings materials were found (company IPO’d in Dec 2024); trend analysis leverages FY and Q4 YoY plus the early Q1 2025 trading update [ListDocuments results].

Health In Tech, Inc. (HIT)·Q4 2024 Earnings Summary